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MK100
Returning Member

Do I have to file 1040X to update the non-deductible IRS contribution?

I have had made non-deductible IRS contributions over the years but didn't realized that I should report those contributions on my tax return. That is to say, I didn't file form 8606 before doing my 2019 tax return.

 

Before I am working on the 2019 return, I decided to fix it. I conducted research on what to do, and I was told that I would only need to send form 8606 without filling out form 1040x for all previuos years.  Therefore, in year 2020 (before I filed the 2019 tax return) I submitted the form 8606 (with explanation and supporting docuemnts to show the contribution amounts)  to IRS.  And then my 2019 return reflected correct  contribution basis.

 

Surprisingly, I received a letter from IRS today saying that they are returning my 8606 form (although I don't see it being included in that letter) and I would need to file 1040x. 

 

Now I am confused.  I don't know why IRS would need the 1040x. All my IRS contributions were non-deductible. 

 

Can I ignore IRS? Since the 2019 tax return I submitted last year also already reflect the correct non-deductible IRA contribution basis. 

 

If I do need to file 1040x, do I need to file 1040x for all previous years before 2019?

 

 

 

 

17 Replies
fanfare
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

Use Form 1040-X to correct or add missing information on an already filed tax return.

maybe you filled it out incorrectly.

you need to enter line 2 proper amount even though you don't have a previously filed 8606 to support that.

 

don't add extraneous material .

Save that for an IRS audit.

just say you left off the 8606 and here it is.

Critter-3
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

Do you have more than one tax year to correct on a form 8606? If so you have to file an 8606 for every year you made a non-deductible contribution and not just the 2019 return.

fanfare
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

@Critter-3 

not if IRS accepts the one 8606 with the prior years basis on it.

Hal_Al
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

MK100
Returning Member

Do I have to file 1040X to update the non-deductible IRS contribution?

I have sent out delinquent 8606 form for each of the year that I missed before I was working on my 2019 tax return.

MK100
Returning Member

Do I have to file 1040X to update the non-deductible IRS contribution?

The 2019 tax return has the correct 8606 form with correct contribution basis.  IRS didn't seem to have issue with the 2019 tax return. Now the problem is that I filed delinquesnt 8606 forms for each of the years before 2019 to show how I contributed each year and how cost basis gradually increased. I still don't know why I should file 1040x as there should be no change on any numbers on prior 1040 forms. 

 

Critter-3
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

Don't know why the 8606 was returned ... it has a place to sign it so it is a "stand alone form" and doesn't need to be attached to a 1040X.  

 

Each tax year needed it's own 8606 filed and hopefully you mailed them separately ... putting them all in the same envelope could have confused the date input operators. 

MK100
Returning Member

Do I have to file 1040X to update the non-deductible IRS contribution?

Although the letter I just received said IRS is returning my 8606 forms but I have not received them. 

 

I did sign each of the 8606 forms that I missed in prior years. However, I mailed all of them in an envelop with a letter detailing what happened and how the updated basis was calculated. I also included all the supporting docuements. 

 

 

Critter-3
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

Well all you can do is wait for the IRS to return the forms  OR  call the number on the notice to see what is up.  

fanfare
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

@MK100 

Even though the gurus here say that 8606 can be sent by itself,

the fine print says "if you aren't required to file an income tax return".

There have  been a few posts here lately reporting that IRS is asking for Form 1040-X in this situation ; you are not the only one.

MK100
Returning Member

Do I have to file 1040X to update the non-deductible IRS contribution?

how to fill out 1040 x in this case since every piece of information is exactly the same with the original 1040 form of the year? Should I leave all  lines blank (except personal information) and only give explanation that I want to add 8606 form?  Per my understanding, there is no place in 1040 reflects the information from the 8606 form, right? 

fanfare
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

You would fill in column A and column C so they are identical and all entries in Column B are zero.
Lines 20-23 would also be zero.

fanfare
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

I assume you would be filing one 1040-X for the year  IRS contacted you only.

fanfare
Level 15

Do I have to file 1040X to update the non-deductible IRS contribution?

@MK100 

My answer above was incorrect.

If you aren’t changing any dollar amounts you originally reported, you don't have to do columns A B C.

 

Sorry 'bout that.

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